The new iPhone is rumored to pack a dual core CPU, an 8 MP camera, and look somewhat like the iPhone 4. The fifth generation model is expected to launch in Sept. and is rumored to be named the "iPhone 4GS". (Source: Google Images)

A "Retina Display" iPad is also reportedly incoming. (Source: Apple)

Company struggles to stay competitive in the face of the Android army's onslaught

Still, the fifth generation iPhone (which some say will actually be named the
iPhone 4GS, rather than the iPhone 5), codenamed "Telluride", will
launch within three months according
toBloomberg.

The September iPhone will bring with it a
new dual-core CPU, the same Apple A5 processor found in the iPad 2 (though
it may be underclocked to conserve battery life). Bloomberg contradicts
previous reports saying its sources close to Apple are saying that their will be
a 8 megapixel image sensor for the rear camera (previous reports suggested the
phone would retain its 5 MP sensor).

The sources at Apple suggest that the phone will look a lot like the current
iPhone.

Framington, Mass.-based research firm IDC says that despite introducing new
models every year, Apple is having trouble keeping up with Google Inc.'s (GOOG)
Android operating system and wealth of hardware partners. It estimates
that Apple will hold an 18.5 percent market share at the end of 2011, while
Google will have 38.9 percent of the market -- over twice as much.

The race between Android and the iPhone is increasingly looking like the 80s
and 90s race between the Mac and the Windows PC -- and we all know how that turned
out. That's rough news for Apple, which currently gets half its revenue
from the iPhone.

The launch of the fifth gen. iPhone will also correspond with the launch iOS 5. One key advance in the
new operating system will be the introduction of over-the-air (OTA) updates, a
feature long supported by Android. Other reports indicate that the new
iPhone may grace the Sprint Nextel Corp. (S)
or Deutsche Telekom AG's (DTE)
T-Mobile network in the U.S.

In related news, Bloomberg also claimed that its sources
delivered information on two other pending Apple gadgets. One will be a
low-priced, smaller version of the iPhone, based on the hardware of the iPhone
4. That device will be aimed at developing countries -- an area where
struggling Finnish phone maker Nokia Oyj. (HEL:NOK1V) has
traditionally dominated.

A new iPad is also rumored to be coming, which uses a scaled up version of the "Retina Display" found in the
iPhone 4. The device would boost about a third higher screen resolution
and would include a more responsive touch layer.

It is rumored that Apple is planning to bump up the launch of the sixth generation iPhone to
Spring 2012. Possibly named the "iPhone 5" (assuming the
"iPhone 4 GS" rumor holds true), the phone is expected to deliver a
major hardware update, along the lines of the update in the fourth generation.